| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 89R13621 JBD-D | |
| 2 | 2 | By: Shaheen H.B. No. 4295 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | ||
| 6 | 6 | ||
| 7 | 7 | A BILL TO BE ENTITLED | |
| 8 | 8 | AN ACT | |
| 9 | 9 | relating to the authority of a political subdivision to issue a | |
| 10 | 10 | public security if the debt-to-asset ratio of the political | |
| 11 | 11 | subdivision exceeds a certain percentage. | |
| 12 | 12 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 13 | 13 | SECTION 1. The heading to Chapter 1253, Government Code, is | |
| 14 | 14 | amended to read as follows: | |
| 15 | 15 | CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] ISSUED | |
| 16 | 16 | BY POLITICAL SUBDIVISIONS | |
| 17 | 17 | SECTION 2. Chapter 1253, Government Code, is amended by | |
| 18 | 18 | adding Section 1253.004 to read as follows: | |
| 19 | 19 | Sec. 1253.004. LIMITATION ON AUTHORITY TO ISSUE PUBLIC | |
| 20 | 20 | SECURITIES WITH HIGH DEBT-TO-ASSET RATIO. (a) In this section, | |
| 21 | 21 | "public security" has the meaning assigned by Section 1201.002. | |
| 22 | 22 | (b) A political subdivision may not issue a public security | |
| 23 | 23 | if the political subdivision has a debt-to-asset ratio of 20 | |
| 24 | 24 | percent or more. | |
| 25 | 25 | SECTION 3. The change in law made by this Act applies only | |
| 26 | 26 | to a public security issued by a political subdivision on or after | |
| 27 | 27 | the effective date of this Act. | |
| 28 | 28 | SECTION 4. This Act takes effect September 1, 2025. |